About Ferd Capital
Ferd Capital is an active and long-term investor in privately held and listed companies. This means that Ferd Capital assesses when to invest or sell its investments, as well as working actively with the companies in which it invests for the duration of its ownership in order to ensure the best possible value creation. Ferd Capital carries out its role as an active investor through collaboration with the management of its portfolio companies, both through traditional board representation and in other ways.
At the end of 2016, the part of Ferd’s assets managed by Ferd Capital was valued at around NOK 10.3 billion.The number of companies in the portfolio will vary over time, but we expect that investments will normally involve around 10-15 portfolio companies.
How we work
Ferd Capital has a flexible mandate. This means that we are not restricted to any particular industries or sectors, and we can invest in a wide range of different situations - from mature companies in need of a turnaround through to venture companies that need professionalising and additional capital. We are not structured as an investment fund, and this gives us great flexibility in terms of our investment horizon - we may own companies for just a few years or continue as an owner for decades, all depending on whether we believe that our continuing ownership will contribute to value creation.
We have good experience of owning companies jointly with one or more partners, subject to being in agreement on strategic direction and on a balanced allocation of involvement in decision making, as well as agreeing clearly identified exit opportunities.
Ferd Capital looks for investments in companies where it has relevant and valuable expertise. The Ferd Capital team consists of people with experience from private equity investment, operational management, business development, financial services and strategy consulting. Click here for more information about the Ferd Capital team.
Ferd Capital operates with defined investment criteria that help us to prioritise investment opportunities that we will consider. Click here for more information about our investment criteria
The process that leads to a final decision to invest in a company involves extensive evaluation using both internal and external resources. As part of this, we seek to identify all the important value drivers and risk factors for the company. The process also focuses on developing a sound plan for value creation where we identify and quantify our objectives for the investment and how these can be achieved. In our experience, close and open dialogue with the company's management at the evaluation stage provides the best basis for ensuring that the transaction will be successful not only for Ferd and for any other investors that we are working with, but also for the company and for the seller.
We use the value creation plan to articulate our ownership agenda for long-term value creation, and the plan identifies the basis for our interaction with the company during the period of ownership. This plan is then reviewed and updated on a regular basis, preferably in conjunction with the company's annual strategic process.
In addition to ensuring that the company has the right board of directors and executive management to implement our ownership agenda, we also play an active role in adding value to the company through:
- Establishing incentive arrangements for the company’s senior management that are targeted on creating shareholder value.
- Participating in specific projects, for example:
- as part of the company's strategic process
- in connection with financing and capital structure
- in connection with acquisitions/mergers
- other specific operational projects.
- Carrying out regular strategic analysis to ensure that we have a good understanding of the company's challenges and opportunities.
- Facilitating access to the rest of Ferd’s extensive network, both within Ferd, in other Ferd-owned businesses and externally.
Taking the senior role in exit processes to ensure successful implementation with the best possible outcome
Ferd has developed ownership principles in listed companies where we have board representation. Click here for more information about the ownership principles